RNI  No. MAHENG /2009/35528

Reg. No. MH/MR/South-344/2014–16

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In pursuance of clause (3) of article 348 of the Constitution of India, the following
translation in English of the Maharashtra Housing (Regulation and Development) Act, 2012
(Mah. Act. No. II of 2014), is hereby published under the authority of the Governor.

                                    By order and in the name of the Governor of Maharashtra,

                                                                                            H. B. PATEL ,

                                                                           Principal Secretary to Government,
                                                                               Law and Judiciary Department.

MAHARASHTRA ACT No. II OF 2014.
(First published, after having received the assent of the Hon'ble President in the
"Maharashtra Government Gazette" on the 24th February 2014).

Mah.
XLV
o f
1963.

An Act to regulate and promote the construction, sale, management
and  transfer of flats on the ownership basis in the State of
Maharashtra and to establish the Housing Regulatory Authority and
Housing Appellate Tribunal and to provide for matters connected
therewith or incidental thereto.

  WHEREAS  the  Maharashtra  Ownership  Flats  (Regulation  of  the
promotion of construction, sale, management and transfer) Act, 1963,
though enacted to provide for relief to flat purchasers against sundry
abuses, malpractices and difficulties related to the construction, sale,
management and transfer of flats, it is noticed by the State Government
that,  the said  Act  did  not provide  for  an  effective implementing  arm
for its various statutory provisions, as the flat purchasers could only
approach  consumer  forum  or  civil  court  for  acts  of  omission  or
commission regarding provisions of the said Act;

¦ÉÉMÉ  +É`ö--18--1

(1)

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AND WHEREAS the Government considers it expedient to remove
information  asymmetry  by  ensuring  full  disclosure  by  promoters  or
developers and also to ensure compliance of agreed terms and conditions
while  registering, monitoring  and regulating  housing  projects by  the
Housing  Regulatory  Authority  and  to  usher  in  transparency  and
discipline in  the transactions  of flats and  put a  check on  abuses and
malpractices;

AND  WHEREAS  it  is  also  considered  expedient  to  establish  the
Housing Regulatory Authority and the Housing Appellate Tribunal for
ensuring effective implementation of the law and to promote planned
and  healthy  development  and  construction,  sale,  transfer  and
management of flats, residential buildings, and other similar properties,
with a view to protecting, on the one hand, public interest in relation
to the conduct and integrity of promoters and other persons engaged
in the development of such flats, residential buildings and other similar
properties,  and,  on  the  other,  facilitating  the  smooth  and  speedy
construction and maintenance of such flats, buildings and properties;

AND  WHEREAS  it  is  expedient  to  make  a  comprehensive  law  to
regulate  and  provide  for  promotion  of  the  construction,  sale,
management and transfer of flats on the ownership basis in the State
of Maharashtra, and to establish the Housing Regulatory Authority and
the  Housing  Appellate  Tribunal  for  effective  implementation  thereof
and  also  to  provide  for  matters  connected  therewith  or  incidental
thereto; it is hereby enacted in the Sixty-third Year of the Republic of
India as follows :—

Short  title,
extent  and
commencement.

1. (1) This Act may be called the Maharashtra Housing (Regulation

and Development) Act, 2012.

(2) It extends to the whole of the State of Maharashtra.

(3)  It shall  come  into  force on  such  date  as the  State  Government
may, by notification in the Official Gazette, appoint and different dates
may be appointed for different provisions and any reference in any such
provision  to  the  commencement  of  this  Act  shall  be  construed  as  a
reference to the coming into force of that provision.

Definitions.

2. In this Act, unless the context otherwise requires,—

(a)  “advertisement”  means  visible  representation  made  to  the
general  public  either  through  announcement  or  display  or  in  any
other manner whatsoever, offering for sale a flat or plot or inviting
persons  to  take  such  flat  or  plot  on  ownership  basis  and  to  make
advances or deposits for such purposes;

(b)  “apartment”  and  “apartment  owner”  shall  have  the  same
meanings  as  respectively  assigned  to  them  in  the  Maharashtra
Apartment Ownership Act, 1970;

(c) “Apex Body” or “Federation” means an independent body formed
by  and  consisting  of  all  the  co-operative  societies  or  companies  or

Mah.
XV  of
1971.

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3

condominiums  or  any  other  legal  entity,  constituted  of  the  flat
purchasers in various buildings with or without wings located within
a  layout,  where  each  such  co-operative  society  or  company  or
condominium or any other legal entity, as the case may be, shall co-
operate in the maintenance and administration of common areas and
amenities and facilities provided in the layout but shall independently
retain control of its own internal affairs and administration in respect
of each of the buildings for which they are formed;

(d) “carpet area” shall have the same meaning as assigned to it in

the relevant Development Control Regulations ;

(e) “common areas and amenities and facilities of a layout” means
the  areas,  amenities  and  facilities  intended  for  common  use  of
apartment owners in a layout and includes park, recreational ground,
play ground, open space, path, pathway, alleyway or garden located
outside the area of any building or buildings, street lights, securities,
water  and  electric  supply,  sewerage,  drainage,  public  works,  fire
fighting systems and works, water tanks, other utilities and services,
and the like, provided or to be provided by the promoter within the
layout but shall not include parking spaces or garages;

(f)  “Competent  Authority”  means  the  Competent  Authority

appointed under section 21 ;

(g) “compulsory  open  space”  means  the  minimum  open  space
permitted  and  approved  to  be  kept  as  such  while  constructing  a
building  or  buildings  by  the  local  Planning  Authority  under  the
Development Control Regulations or under any law for the time being
in  force  ;

(h)  “conveyance”  means  the  legal  instrument  of  transferring
property, property rights, and title from one person or legal entity
to another person or legal entity through registered deed and shall
include lease, sub-lease or assignment;

(i)  “development”,  with  its  grammatical  variations  and  cognate
expressions,  means  to  carry  out  development  of  building  or  the
making  of  any  material  change  in  any  building  and  includes
redevelopment;

(j) “development charges” means the cost of external development

work to be carried out by the local authority;

(k) “development works” means the internal development works

and external development works;

(l) “external development works” means infrastructure work such
as roads and road systems, landscaping, water supply, sewerage and
drainage systems, electricity supply transformer, sub-station or any
other work which may have to be executed by the local authority;

(m) “flat” means a separate and self-contained set of premises used
or intended to be used for residence, office, show-room, shop, godown

¦ÉÉMÉ  +É`ö--18--1+

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or for carrying on any industry or business and the premises forming
part of the building and includes an apartment.

Explanation. – If provision is made for sanitary, washing, bathing or
other  conveniences  as  common  to  two  or  more  sets  of  premises,  the
premises shall be deemed to be separate and self-contained ;

(n)  “Housing  Appellate  Tribunal”  means  the  Housing  Appellate

Tribunal established under section 36;

(o) “Housing Regulatory Authority” means the Housing Regulatory

Authority established under section 22;

(p) “internal development works” includes roads, footpaths, water
supply,  sewers,  drains,  tree  planting,  street  lighting,  provision  for
community buildings and for treatment and disposal of sewage and
sullage  water  or  any  other  work  in  the  boundary  of  a  layout
necessary for its proper development;

(q) “layout” means the schematic planning and,—

(i) development of more than one building, except for building

accessory to the main building, proposed on any land; or

(ii)  development  or  redevelopment  of  any  tract  of  land
admeasuring two thousand square meters or more in a residential
or commercial or in an industrial zone, including its division or
sub-division into plots;

(r)  “limited  common  areas  and  facilities  of  a  building”  means
entrance hall, staircases, lift, common passages on every floor, fire
fighting systems within building including fire chute, refuge areas,
garbage  disposal  area  includings  garbage  chute,  service  floors  or
terraces above the upper most floor of the building and includes all
areas in the building except parking spaces and utility areas;

(s)  “local  authority”  means  the  local  authority  as  defined  under
clause  (15)  of  section  2  of  the  Maharashtra  Regional  and  Town
Planning Act, 1966;

(t) “marketing” means advertising for sale and promotion for sale

of any flat or land in any project by the promoter;

(u)  “Member”,  in  relation  to  the  Housing  Regulatory  Authority,
means the member of the Housing Regulatory Authority and includes
the Chairperson thereof; and, in relation to the Housing Appellate
Tribunal, means the member of the Housing Appellate Tribunal and
includes the Chairperson thereof;

(v) “open space” means an area forming an integral part of a site

left open to the sky;

(w) “parking space” means an enclosed or unenclosed, covered or

open area which is sufficient in size to park vehicles;

Mah.
XXXVII
of  1966.

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5

Mah.
XXIV  of
1961.
1  of
1956.

(x) “prescribed” means prescribed by rules made under this Act;
(y) “project” means a housing project under this Act;
(z) “promoter” means a person, a developer or builder and includes
a partnership firm or limited liability firm or any body or association
of persons whether registered or not and who constructs or causes
to  be  constructed  a  block  or  building  of  flats  for  the  purpose  of
disposing of by sale or otherwise some or all of them to other person,
or to a company, co-operative society or other association of persons,
and  includes  his  assignees,  and  where  the  person  who  builds  and
the person who disposes of are different persons, the term includes
both;

(za) “Registrar” means the Registrar as defined in the Maharashtra
Co-operative  Societies  Act,  1960  or  as  the  case  may  be,  in  the
Companies Act, 1956;

(zb) “regulations” means the regulations made under section 52;
(zc) “Schedule” means the Schedule appended to this Act;
(zd) “to construct a block or building of flats” includes converting

a building or part thereof into flats;
(ze) “Township” means an area,—

(i) where more than one layout is proposed or approved on any

land; and

(ii)  where  the  land  under  development  admeasures  forty
hectares  or  more  at  one  place,  continuous,  unbroken  and
uninterrupted;
(zf)  “utility  area”  means  dry  balconies,  flower  beds,  cupboard
niches, elevation boxes, decks, pocket terraces, open spaces, and the
like, within or attached to a flat.

3. (1) Notwithstanding anything contained in any other law for the
time  being  in  force,  a  promoter  who  intends  to  construct  or  is
constructing or constructs a block or building of flats, which is not for
his  personal  use,  shall,  in  all  transactions  with  persons  intending  to
take or taking one or more of such flats, be liable to give or produce,
or cause to be given or produced, the information and the documents
mentioned hereinafter in this section and also as may be prescribed.

(2)  A  promoter,  who  constructs  or  is  constructing  or  intends  to

construct such block or building of flats, shall,—

(a) make full and true disclosure of the nature of his title to the
land on which the flats are constructed or are to be constructed; such
title  to  the  land  as  aforesaid  having  been  duly  certified  by  an
Attorney-at-law,  or  by  an  Advocate  of  not  less  than  three  years
standing, and having been duly entered in the property card or extract
of  Village  Forms  VI  or  VII  and  XII  or  any  other  relevant  revenue
record :

Provided  that,  if  such  land  is  owned  by  another  person,  a  duly
registered copy of the agreement or Power of Attorney, as the case
may be, by which the owner, including his legal heirs, executors and

Disclosures
to  be  made
by
promoter.

6

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administrators, of such land has granted to the promoter or assigns
the  development  rights  of  the  real  estate  project,  shall  also  be
disclosed;

(b) make full and true disclosure of all encumbrances on such land,
including any right, title, interest or claim of any party in or over
such land;

(c) make full and true disclosure of his enterprise details such as
name,  registered  address,  type  of  enterprise,  registration  details
under which it is registered;

(d)  disclose  the  name  and  address  of  the  architect,  structural
engineer  and  contractor  including  turn-key  contractor,  if  any,
retained for construction of the building or flats;

(e) disclose the information relating to the number and size of plots,
layout plan, carpet areas, and utility areas of the flat, Floor Space
Index  or  the  Transfer  of  Development  Rights  or  additional  Floor
Space Index consumed in the building of which flats are under sale
and limited common areas and facilities of the building and common
areas  and  amenities  and  facilities  of  the  layout  proposed  to  be
provided therefor;

(f) give inspection, on seven days’ notice or demand, of the plans,
structural design and specifications of the building in which flats are
being offered for sale or are being marketed, built or to be built on
the  land,  duly  certified  by  an  Architect  till  such  time  as  they  are
approved  by  the  local  authority,  and  when  such  plans  and
specifications, having  been approved by  the local  authority, which
he is required to do under any law for the time being in force, then
such approved plans and specifications;

(g) disclose the building-wise time schedule of completion of each
phase of the project which shall always be subject to force majeure
event;

(h) disclose the time schedule for connecting the project with the
municipal  services  such  as  sewerage,  water  supply,  electricity,
drainage, and the like, as applicable, which shall always be subject
to force majeure  event;

(i) disclose the nature of fixtures and fittings with regard to the
flooring and sanitary fittings and the provision for one or more lifts
provided or to be provided, with particulars in respect of the brand
of  the  items  of  fixtures,  fittings  and  lift  if  they  are  branded  or
otherwise the price range of the items, if not branded;

(j)  disclose  on  reasonable  notice  or  demand,  if  the  promoter  is
himself  the  builder,  the  prescribed  particulars  in  respect  of  the
design,  the  type  of  concrete,  the  materials  to  be  used  in  the
construction  of  the  building  and  the  technology,  prefabricated,
precast, earthquake resistant,  and the like, and if  the promoter is
not  himself  the  builder,  disclose,  on  such  notice  or  demand,  all
agreements, and where there is no written agreements, the details
of all agreements, entered into by him with the architect, structural

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7

engineer and contractors including turn-key contractors, regarding
the  prescribed  particulars  in  respect  of  design,  materials  and
construction of the building;

(k) specify in writing the date by which possession of the flat with

all the amenities is to be handed over;

(l) prepare and maintain a list of flats with their numbers built or

to be built;

(m) prepare and maintain list of parking spaces provided or to be

provided, and identified by separate numbers;

(n) state in writing, the nature of the organization of persons to
be constituted and to which title is to be passed, and the terms and
conditions governing such organization of persons, who have taken
or are to take the flats;

(o)  display  or  keep  all  the  documents,  plans  or  specifications  or
copies thereof referred to in clauses (a), (b), (c), (d), (e) and (f) at the
site  and  at  the  promoter’s  registered  office  and  permit  inspection
thereof to persons intending to take or taking one or more flats;

(p)  disclose  the  names,  addresses  and  contact  numbers  of  the
agents, property dealers, brokers  or middlemen, if any, by whatever
name called, duly authorized by the promoter ;

(q)  give  such  other  information  and  documents  as  may  be

prescribed.
(3)  In case  of  a layout,  in  addition to  the  provisions of  sub-section

(2), the promoter shall also disclose,—

(a) the phase-wise layout plan of the housing project;
(b) the plan of phase of the development works in which flats for

sale is marketed in the project;

(c)  the  details  of  the  parts  of  the  colony  or  apartments  and  the
appurtenant areas that  are intended to be kept  as common areas,
amenities and facilities of layout in respect of the phase being offered
for sale  or marketed;

(d)  aggregate  area  in  square  meters  of  the  parks,  recreational

grounds, gardens and play-grounds in a layout.

4.  (1)  Every  promoter  of  the  project  shall  make  an  application,  in
the  prescribed  form,  to  the  Housing  Regulatory  Authority  for
registration of the project and for displaying the project on the website
of the Housing Regulatory Authority, alongwith such fees, not exceeding
fifty thousand rupees, as may be prescribed:

Provided that, no such registration and displaying of the project or

phase of such project shall be required,—

(i)  when  the  area  of  the  land  proposed  to  be  developed  into  a
project or  phase of  such project  does not  exceed two  hundred fifty
square  meters;

(ii) when the total number of flats proposed to be developed into

a project inclusive of all phases is less than five;

Registering
the  project
and
displaying it
on  the
website  of
Housing
Regulatory
Authority.

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(iii) where the promoter has received occupation certificate from the
concerned local authority in respect of development of such flats or the
building  in  such  project  or  phase  of  the  project  prior  to  coming  into
force of  this section;

(iv)  where  the  project  is  a  renovation,  repair,  reconstruction  or
redevelopment project which does not involve fresh or new allotment
of flats or marketing for sale of flats.

Explanation.—For the purposes of this Act,—

(i)  where  any  project  is  proposed  to  be  marketed  and  sold  in
phases, then every such phase shall be considered as an independent
project;

(ii) if a single purchaser of all the flats in a project duly registered
by the Housing Regulatory Authority intends to dispose of such flats,
by  sale  or  otherwise,  then,  such  single  purchaser  shall  also  be
required to register and display the project under the provisions of
this Act.

(2)  The  promoter  shall  enclose  following  documents  alongwith  the

application under sub-section (1), namely :—

(a) chartered  engineer’s  or  chartered  architect’s  authenticated

copy of the proposed development of each phase of the project ;

(b) proof  of  submission  of  plan  for  approval  of  local  authority.
Approval  and  sanction  from  the  local  authority,  as  and  when
available, obtained in accordance with the building regulations and
other laws as are applicable, for the project being offered for sale or
marketed  and  such  approval  and  sanction  shall  be  submitted  or
uploaded on website within seventy-two hours of obtaining the same
from the local authority.

(3)  The  Housing  Regulatory  Authority  shall,  within  seven  days  of
obtaining  the  application  for  the  registration  of  the  project  from  the
promoter, register and allot a password to the promoter for access of
the website of the Housing Regulatory Authority.

5. (1) No  promoter  shall  start  any  transaction  including  sale  or
marketing  for  sale  of  flats  in  a  new  project  or  phase  of  such  project
without displaying such flats on the website of the Housing Regulatory
Authority :

Provided  that,  for  projects  that  are  ongoing  on  the  date  of
commencement of this section and where the occupation certificate is
still to be obtained, the promoter shall make application to the Housing
Regulatory Authority for registration of its project within such period
as may be prescribed.

(2) No promoter shall start sale of a prescribed percentage of flats
the  area  of  which  shall  not  exceed  ten  per  cent.  of  the  total  area  of
each  of  the  building  in  every  new  project  (hereinafter  referred  to  as
“Retained Flats”), till occupation certificate from the local authority in
respect of that building is obtained by the promoter. The details of such
flats  shall  be  displayed  on  the  website  of  the  Housing  Regulatory
Authority, before the start of any transaction including marketing. The
promoter  shall  be  entitled  to  sell  “Retained  Flats”,  in  each  of  the
building only after receipt of occupation certificate or building completion
certificate from the local authority for that building.

No
transaction,
including  sale
or  marketing
for  sale,  of
flats
in    new
project
without
registration  of
the  project
and  displaying
it  on
website  of
Housing
Regulatory
Authority.

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9

Responsibility
of  the
promoter  to
enter  record
or  details  on
the  website
of  Housing
Regulatory
Authority.

Cancellation
o f
registration.

Issuing  of
advertisement
or
prospectus
inviting
advance  or
deposit.
Promoter
before
accepting
advance
payment  of
deposit,
beyond
twenty
per  cent.,  to
enter  into
agreement
and
agreement
to  be
registered.

6. The promoter shall, on receiving the password from the Housing
Regulatory Authority, through a system of self-entry, access the website
and enter the required details of the housing project, within such period
as may be prescribed.

7. (1) The Housing Regulatory Authority may cancel the registration
of  the  project,  if  it  is  declared  by  the  court  of  law  that  the  contract,
agreement, or power of attorney or instrument or writing from which
the promoter derives the right to the land or development of the land,
is invalid :

Provided that, no order of cancellation of registration of the project
under  this  sub-section  shall  be  issued  by  the  Housing  Regulatory
Authority unless a reasonable opportunity of  being heard is given to
the  promoter.

(2) Upon issuing the order of cancellation, the Housing Regulatory
Authority shall debar the promoter from accessing its website in respect
of the project so cancelled.

8. No promoter shall issue or publish an advertisement or prospectus,
offering for sale or otherwise, any flat or inviting persons who intend
to  take  such  flats  to  make  advance  payments  or  deposits,  without
displaying the project or phase on the website of the Housing Regulatory
Authority.

9. (1) Notwithstanding anything contained in any other law for the
time being in force, a promoter who intends to construct or constructs
a block or building of flats all or some of which are taken or to be taken
on ownership basis or otherwise, shall, before, he accepts any sum of
money  as  advance  payment  or  deposit  exceeding  twenty  per  cent.  of
the  sale  price,  enter  into  a  written  agreement  for  sale  with  each  of
such  persons  who  are  to  take  or  have  taken  such  flats,  and  the
agreement  shall  be  registered  under  the  Registration  Act,  1908
(hereinafter, in this section, referred to as “the Registration Act") and
such agreement shall be in the prescribed form.

(2)  The  agreement  to  be  entered  into  under  sub-section  (1)  shall
contain, inter alia, the particulars as specified in clause (a) of this sub-
section  and  to  such  agreement  there  shall  be  attached  the  copies  of
the documents specified in clause (b) thereof,-–

(a) particulars,—

(i) the plans and specifications approved by the local authority

and all other approvals required under any law, as applicable;

(ii) the date by which the possession of the flat is to be handed

over to  the purchaser;

(iii) the extent of the carpet area of the flat;
(iv) the extent of the utility area ;
(v) the total price of the flat including the proportionate price
of  the  limited  common  areas  and  facilities  and  parking  spaces

¦ÉÉMÉ  +É`ö--18--2

XVI
o f
1908.

10

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

which should be shown separately, to be paid by the purchaser of
flat; and the intervals at which instalments thereof may be paid;
(vi) allotment of fixed parking space to the flat purchaser :

Provided that, no parking spaces shall be allotted in minimum

open space;
(vii)  the  nature  of  the  organization  to  be  constituted  of  the

persons who have taken or are to take the flats ;

(viii) the nature, extent and description of limited common areas

and facilities of a building;

(ix) the aggregate area of park, garden, recreation ground and

playground proposed to be provided for in a lay-out;

(x)  the  nature,  extent  and  description  of  common  areas  and

amenities and facilities of a lay-out, if any;

(xi)  Statement  of  the  use  for  which  the  flat  is  intended  and

restriction on its use, if any;

(xii) percentage of undivided interests in the limited common
areas and facilities of the building, pertaining to the flat agreed
to be sold;

(b) copies of documents,—

(i) the certificate by an Attorney-at-law or an Advocate under

clause (a) of sub-section (2) of section 3;

(ii) Property Card or extract of Village Forms VI or VII and XII
or any other relevant revenue record showing the nature of the
title of the promoter to the land on which the flats are constructed
or  are to  be  constructed;

(iii) the plans and specifications of the flats approved by the local

authority.

(3) Any agreement for sale entered into under sub-section (1) shall
be presented, by the promoter or by any other person competent to do
so under section 32 of the Registration Act, at the proper registration
office for registration within the time allowed under sections 23 to 26
(both inclusive) of the Registration Act and execution thereof shall be
admitted  before  the  registering  officer  by  the  person  executing  the
document or his representative, assignee or agent, duly authorized, as
laid down in sections 34 and 35 of the Registration Act also within the
time aforesaid:

Provided that, on presenting a document for registration, as aforesaid,
if the person executing such document or his representative, assignee
or agent does not appear before the registering officer and admit the
execution  of  the  document,  then  the  registering  officer  shall  cause  a
summons  to  be  issued  under  section  36  of  the  Registration  Act,
requiring the executants to appear at the registration office, either in
person or by duly authorized power of attorney holder, at a time fixed
in  the  summons.  If  the  executants  fail  to  appear  in  compliance  with
the  summons,  the  execution  of  the  document  shall  be  deemed  to  be

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

11

admitted by them and the registering officer may proceed to register
the  document  accordingly.  If  the  executants  appear  before  the
registering officer as required by the summons but deny execution of
the  document,  then  the  registering  officer  shall,  after  giving  them  a
reasonable opportunity of being heard, if satisfied that the document
has  been  executed  by  them,  proceed  to  register  the  document
accordingly.

10. Where an agreement for sale entered into under sub-section (1)
of section 9, remains unregistered for any reason, then, notwithstanding
anything  contained  in  any  law  for  the  time  being  in  force,  or  in  any
judgment, decree or order of any Court, it may be received as evidence
of a contract in a suit for specific performance under Chapter II of the
Specific Relief Act, 1963, or as evidence of part performance of a contract
for the purposes of section 53A of the Transfer of Property Act, 1882,
or as evidence of any collateral transaction not required to be effected
by registered instrument.

47  of
1963.
IV  of
1882.

Effect  of
non-
registration
o f
agreement.

Responsibilities
of  promoter.

11. (1) When any person makes an advance or a deposit on the basis
of the information  contained in the advertisement  or prospectus and
sustains any loss or damage by reason of any wilful untrue statement
included  therein,  then  he  shall  be  compensated  by  the  promoter  for
any loss that he may have sustained consequent to such information:
Provided  that,  if  the  person  affected  on  account  of  such  wilful
untrue  statement,  withdraws  from  the  project,  the  entire  amount
paid by such person shall be returned to him alongwith interest at
the prescribed rate but not exceeding fifteen per cent., per annum.

(2) Promoter  shall take  all those measures  provided in  Schedule I

for protection and safety of a building.

(3)  (a)  It  shall  be  the  responsibility  of  the  promoter  to  obtain  the
occupation certificate or building completion certificate in respect of the
building  from  the  concerned  local  authority  as  per  the  building
regulations  in  force  and  make  a  copy  thereof  available  to  the  flat
purchasers or unit holders individually or to an organization which is
the authorized collective body of flat purchasers or unit holders, as the
case may be.

(b)  The  promoter  shall  not  allow  persons  to  take  possession  until
occupation  or  completion  certificate,  as the  case  may  be,  where  such
certificate is required to be given under any law, is duly given by the
local authority and no person shall take possession of a flat until such
occupation  or completion  certificate has  been  duly given  by the  local
authority.

(4) After the possession of the building or flat is handed over to the
flat purchasers or unit holders, the flat purchasers or unit holders shall
not be permitted to carry out any additions or alterations in the flat or
building  and  the  promoter  shall  not  be  responsible,  if  additions  and
alterations are done in the flat, or building by the flat purchasers or
unit holders or occupier, in violation of the building regulations.
¦ÉÉMÉ  +É`ö--18--2+

12

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

(5) (i) It shall be the responsibility of the promoter to provide essential
services  such  as  water  supply,  electricity,  light  in  passages  and
staircases,  lifts  and  sanitary  services  as  per  agreement  to  the  flat
purchasers or unit holders of the building or flat or to any person in
authorised  occupation  thereof  till  such  time  and  in  such  manner  as
specified in the agreement of sale and such services shall not, except
with just and sufficient notice, be cut-off, withheld, or curtailed. The
aforesaid responsibility is subject to the service provider providing the
same. If the service provider is unable to provide the aforesaid services,
then the promoter shall not be responsible to provide the same.

(ii) The details of the essential supplies and services referred to in
clause (i) above shall be kept by the promoter in the form of a statement
and shall be made available on demand to the flat purchasers or unit
holders or organization of flat purchasers or unit holders.

(iii) If the allottee or flat or unit purchaser or organization fails to
pay the outgoings to the promoter, which are payable by the allottee
or flat or unit purchaser or organization under this Act, for a period of
more  than  three  months,  then  the  promoter  may  approach  the
Competent Authority, who may, after giving notice of not less than seven
days to such allottee or flat or unit purchaser or organization, as the
case may be, cut-off, withold or in any manner curtail or reduce any
essential  supply  or  service  enjoyed  by  such  allottee  or  flat  or  unit
purchaser or organization in the project.

(6) In case the promoter is undertaking a redevelopment project, the
provisions of this Act shall apply only in relation to the flats or buildings
which are for marketing or sale in open market. The flats or buildings
which  are  entirely  constructed  for  providing  permanent  alternate
accommodation to existing occupants of redevelopment project shall not
be governed by the provisions of this Act, but shall be governed by the
statute under which such schemes are being framed.

12. The promoter shall maintain building-wise separate account in
any  bank  of  sums  taken,  by  him,  from  persons  intending  to  take  or
who  have  taken  flats,  deposits including  any  sums  so  taken  towards
the share capital for the formation of co-operative society or a company
or towards the outgoings, including ground rent, if any, municipal or
other local taxes, taxes on income, water charges, electricity charges,
revenue assessment, interest on any mortgage or other encumbrances,
if any; and he shall hold the said moneys for the purposes for which
they were given and shall disburse the moneys for those purposes and
shall, on demand in writing by an officer appointed, by general or special
order,  by  the  State  Government  for  the  purpose,  make  full  and  true
disclosure of all transactions in respect of that account.

The promoter shall also follow the instructions specified in Schedule
II. The promoter shall get the accounts maintained for heads mentioned
in Schedule II, as provided under this section, audited from a Chartered
Accountant registered with the Institute of Chartered Accountants of
India.

Promoter  to
maintain
separate
account  of
sums  taken
as  advance
or  deposit
and  to  be
trustee
therefor
and
disburse
them  for
purposes
for  which
given.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

13

Responsibility
for  payment
of  outgoings
till  property
is
transferred.

No
alterations
or  additions
without
consent
after  plans
are
disclosed.

13. A promoter, while he is in possession and where he collects from
persons, who have taken over flats or are to take over flats, sums for
the payment of outgoings, shall pay all outgoings, including ground rent,
municipal  or  other  local  taxes,  taxes  on  income,  water  charges,
electricity charges, revenue  assessment, interest on any  mortgage or
other  encumbrances,  if  any,  until  he  transfers  the  property  to  the
persons taking over the flats, or to the organization of any such persons.
Where any promoter fails to pay all or any of the outgoings collected
by him from the persons who have taken over flats or are to take over
flats, before transferring the property to the persons taking over the
flats  or  to  the  organization  of  any  such  persons,  the  promoter  shall
continue  to  be  liable,  even  after  the  transfer  of  the  property,  to  pay
such outgoings and penal charges, if any, to the authority or person to
whom  they  are  payable  and  shall  be  responsible  for  any  legal
proceedings which may be initiated by such authority or person.

14. (1) In case the development consists of single building then after
the plans and specifications of the building, as approved by the local
authority  as  aforesaid,  are  disclosed  or  furnished  to  the  person  who
agrees to  take one or more  flats, the promoter  shall not,-

(a)  make  any  alteration  in  the  structure  described  therein  in
respect of the flat or flats which are agreed to be taken, without the
previous consent of that person;

(b) construct any additional floors or wings in the structure of the
building or wing, not disclosed in the agreement, without the previous
consent of all the persons who have agreed to take the flats in such
building or wing:

Provided  that,  any  alteration  or  addition  required  by  any
government  authorities  or  due  to  change  in  law  or  which  are
disclosed in the agreement, shall not require previous consent of any
or all persons who have agreed to take flats in such building.

(2) (a) In case the development is being carried out on a layout or
Township,  then  after  the  plans  and  specifications  of  the  building,  as
approved by the local authority as aforesaid, are disclosed or furnished
to the person who agrees to take one or more flats, the promoter shall
not,–

(i)  make  any  alteration  in  that  structure  described  therein  in
respect of the flat or flats which are agreed to be taken, without the
previous consent of that person;

(ii) construct any additional floors or wings in the structure of the
building or wing, not disclosed in the agreement, without the previous
consent of all the persons who have agreed to take the flats in such
building or wing ;

(iii) make any modification in the location of the recreation ground
or garden or park or playground without the consent of those persons
who have agreed to take flats on the basis of disclosure of the location
of such recreation ground or garden or park or playground and such
fact is mentioned  in writing in the  agreement for sale of  such flat
by the  promoter.

(b)  Subject  to  provisions  of  clause  (a)  above,  the  layout  including
recreation ground, park, garden and playground disclosed alongwith the
building plans, can be amended, modified and varied by the promoter,
from  time  to  time,  in  accordance  with  the  Development  Control
Regulations including for the utilization of the full development potential
available, from time to time.

14

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

Defects
noticed
within  five
years  to  be
rectified.

Effect  of
non-
completion
of  project.

(c) In case of development under a layout or Township, the promoter
shall be entitled to further construction of any new building in the layout
or Township at any time after obtaining approval of the local authority
in  accordance  with  the  building  rules  or  building  bye-laws  or
Development  Control  Regulations  made  under  any  law  for  the  time
being in force:

Provided  that,  the  promoter  shall  not  reduce  the  approved
compulsory  open  spaces  of  the  building  or  shall  not  reduce  the
aggregate area of park, recreational ground, playground and garden
in the approved layout in which persons agree to take one or more
flats, without the previous consent of all such persons, except that
such alteration or amendment is required by the authorities or due
to change in applicable laws.

15.  If  any  defect  in  the  building  or  material  used,  or  if  any
unauthorized change in the construction is brought to the notice of the
promoter, within a period of five years from the date of handing over
possession of flats, it shall, be rectified by the promoter without further
charge to the persons who have agreed to take the flats and in other
cases,  where  the  defect  or  change  can  not  be  rectified,  such  persons
shall be entitled to receive reasonable compensation for such defect or
change. Where there is a dispute regarding any defect in the building
or material used or any unauthorized change in the construction, the
matter  shall,  within  a  period  of  five  years  from  the  date  of  handing
over possession, on payment of such fee as may be determined by the
Housing Regulatory Authority, be referred for decision to such officer
not below the rank of an Executive Engineer as the State Government
may, by general or special order, specify in this behalf.

16.  (a) If  the  promoter  fails  to  complete  construction  and  obtain
occupation  certificate  of  any  building  or  buildings  in  the  project  in
accordance  with  the  terms  of  the agreement  by  the  date  specified  or
any further date agreed to by the parties or as may be decided by the
Housing Regulatory Authorty, the Housing Regulatory Authority may,
after giving reasonable opportunity of being heard to the applicant and
the promoter, and on being satisfied that the promoter is not able to
complete  the  construction  and  obtain  occupation  certificate,  pass  an
appropriate  order  to  enable  completion  of  the  construction  of  that
building  and  obtain  occupation  certificate  thereof.  Such  order  of  the
Housing Regulatory Authority may, inter-alia, provide for,—

(i) formation and registration of a legal entity of sixty per cent.
of the flat purchasers in the manner as may be prescribed who have
come before the Housing Regulatory Authority ;

(ii) appointment of the legal entity as an escrow agent for taking
over possession of the building and area appurtenant thereto, in the
manner as may be prescribed ;

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

15

(iii) directing the Competent Authority to transfer the Retained
Flats in the name of the escrow agent within such period and in the
manner as may be prescribed ;

(iv) authorizing escrow agent to appoint contractors, consultants
and other agencies required to complete the construction and obtain
occupation certificate on such terms and conditions as may be decided
by the escrow agent in the manner as may be prescribed :

Provided that, notwithstanding anything contained in any other
law for the time being in force, stamp duty or any other taxes, duties
and levies shall not be payable on ‘ Retained Flats ’ being transferred
to  escrow  agent  under  the  orders  of  the  Housing  Regulatory
Authority.

(b) If the promoter, for reasons beyond his control, is unable to give
possession of the flat by the date specified, or the further agreed date
and a period of three months thereafter, or a further period of three
months if those reasons still exist, then, the promoter shall be liable
on demand, without prejudice to any other actions to which he may be
liable, to refund the amount already received by him in respect of the
flat with interest at a rate as may be prescribed including penalty as
may be determined by the Housing Regulatory Authority.

17. No promoter shall, after he executes an agreement to sell any
flat,  mortgage  or  create  a  charge  on  the  flat  without  the  previous
consent of the person who takes or agrees to take the flat, and if any
such  mortgage  or  charge  is  made  or  created  without  such  previous
consent  after  the  agreement  referred  to  in  section  9  is  registered,  it
shall not affect the rights and interests of such persons.

No
mortgage,
etc.,  to  be
created
without
consent  of
parties  after
execution  of
agreement
for  sale.

18. (1) Where a co-operative society or a company or a legal entity
of  persons is  to  be constituted  of  flat purchasers  in  a single  building
not being part of a layout, the promoter shall submit an application to
the competent authority for registration of the co-operative society or
the company or any other legal entity, as the case may be, within four
months from the date on which the occupation certificate in respect of
such building is issued or, minimum sixty per cent. of the flat purchasers
in such building have taken possession or the promoter has received
full consideration and other amounts for the same, whichever is earlier.

Promoter  to
take  steps
for
formation
of  co-
operative
society,
company,
Apex  Body
or
Federation.

(2) (a) Where a co-operative society or a company or any other legal
entity of persons taking the flats in a layout consisting of more than
one  building  or  wings,  is  to  be  constituted,  the  promoter  shall  form
separate and independent co-operative society or company or any other
legal entity in respect of each of the buildings or wings. The promoter

16

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

shall submit application for formation of co-operative society or company
or any other legal entity in respect of each of the building or wing, as
prescribed, within four months from the date on which the occupation
certificate in  respect of such  building or  wing is issued  or, minimum
sixty per cent. of the total flat purchasers in such building or wing have
taken possession or the promoter has received full consideration and
other amounts for the  same, whichever is earlier.

(b) Where under clause (a) above, the promoter has formed separate
and independent co-operative societies or companies or any other legal
entities of the persons taking flats in different structures consisting of
more  than  one  building  or  wing  within  a  layout,  then  the  promoter
shall  form and  register an  Apex Body  or Federation  consisting of  all
such entities in the layout, within such period as may be prescribed.
(3)  The  Apex  Body  or  Federation  shall  administer  and  maintain
common areas and amenities and facilities provided in the layout but
its members shall independently retain control of the internal affairs
and administration in respect of its own building.

(4) If any property consisting of building or buildings is constructed
or  to  be  constructed  and  the  promoter  submits  such  property  to  the
provisions  of  the  Maharashtra  Apartment  Ownership  Act,  1970  by
executing and registering a declaration as provided by that Act, then
the promoter shall inform the Registrar as defined in the Maharashtra
Co-operative Societies Act, 1960, accordingly and in such cases, it shall
not be lawful to form any co-operative society or company.

(5) (a) If the promoter fails within the prescribed period to submit

an application to the Registrar,–

(i)  for  registration  of  society  in  the  manner  provided  in  the

Maharashtra Co-operative Societies Act, 1960;

(ii) for registration of Apex Body or Federation, in the manner as

prescribed,
the Competent Authority may, upon receiving application from the
persons  who  have taken  flats  from  the  said promoter,  a  co-operative
society  or  company  or  any  other  legal  entity  in  respect  of  any  of  the
buildings  in the  layout, direct  the District  Deputy Registrar,  Deputy
Registrar  or,  as  the  case  may  be,  Assistant  Registrar  concerned,  to
register the society, the Apex Body or Federation.

(b)  No  such  direction  to  register  any  society  or  Apex  Body  or
Federation, under clause (i) or (ii) above, shall be given to the District
Deputy Registrar, Deputy Registrar or, as the case may be, Assistant
Registrar,  by  the  Competent  Authority  without  first  verifying  the
authenticity  of  the  applicant’s  request  and  giving  the  concerned
promoter a reasonable opportunity of being heard.

19. (1) In respect of the property wherein only one building is to be
constructed and if no period for conveying the title of the promoter to
the  organization  of  the  flat  purchasers  is  agreed  upon,  the  promoter
shall,  subject  to  his  right  to  dispose  of  the  remaining  flats,  if  any,
execute  the  conveyance  within  four  months  from  the  date  on  which
the  co-operative  society  or  the  company  is  registered  or,  as  the  case
may be, the association of the flat purchasers or unit holders is duly
constituted.  When  a  promoter  has  submitted  his  property  to  the
provisions  of  the  Maharashtra  Apartment  Ownership  Act,  1970  by
executing and registering a declaration as required by section 2 of that
Act, and no period for conveying the title of the promoter in respect of
an apartment  to each apartment taker  is agreed upon,  the promoter

Mah.
XV  of
1971.
Mah.
XXIV
o f
1961.

Mah.
XXIV
o f
1961.

Mah.
XV  of
1971.

Promoter  to
convey  title,
etc.,  and
execute
documents
according  to
agreement.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

17

shall  execute  the conveyance  or  deed  of  apartment  in favour  of  each
apartment taker within four months from the date, the apartment taker
has entered into possession of his apartment.

(2) In the case of a layout, the said conveyance shall, till such time
as the entire development of the layout is completed, be only in respect
of the structures of the buildings in which a minimum number of sixty
per cent. of total flats are sold, alongwith Floor Space Index consumed
in such building, subject to the right of the promoter to dispose of the
remaining flats, if any, and receipt of the entire consideration amount
and outstanding dues from all the flat purchasers. The conveyance shall
further, be subject to the right to use, in common, the internal access
roads and recreation areas developed or to be developed in the layout
and with the right to use of the open spaces allocated to such building
or  buildings  in  terms  of  the  agreement  for  sale  executed  by  the
promoter and the respective flat purchasers:

Provided that, notwithstanding anything contained in this Act or in
any agreement or in any judgment, decree or order of any court or in
any other law for the time being in force, the promoter shall be entitled
to develop and continue to develop the remaining layout land, with the
right to use the internal access roads and all the facilities, amenities
and services in the layout and to construct any additional structures
thereon  by  consuming  the  balance  Floor  Space  Index  and  balance
Transfer  of  Development  Right,  Floor  Space  Index  and  balance
additional Floor Space Index relating to the said layout land and any
future increase in Floor Space Index and the Transfer of Development
Rights, Floor Space Index and additional Floor Space Index therein due
to  change  in  the  law  or  the  policies  of  the  Government  or  local
authority :

Provided further that, if the Floor Space Index of the plot in a layout
is increased due to change in the law or the policies of the Government
or  local  authorities,  subsequent  to  conveyance  of  any  one  or  more
structures  to  organization  of  flat  purchasers,  then  increase  in  Floor
Space Index which is proportionate to the Floor Space Index utilized
or  consumed  by  the  conveyed  structure  or  structures  to  total  Floor
Space  Index  of  the  layout,  shall  belong  to  the  organization  of  flat
purchasers of the conveyed structure or structures and it shall not be
necessary for the promoter to obtain any consent or permission from
the organization of flat purchasers in the said layout land or phase for
the purpose of utilizing the balance Floor Space Index or the Transfer
of  Development  Right,  Floor  Space  Index  or  additional  Floor  Space
Index.

(3) Where the title of the promoter to be conveyed is in respect of
the entire undivided or inseparable land underneath all such buildings
in a layout, and if no period for executing such conveyance of the entire
undivided or inseparable land underneath all such buildings jointly or
otherwise in favour of Apex Body or Federation is agreed upon, then
such conveyance shall be executed by the promoter in favour of Apex
Body  or  Federation  within  such  time  as  may  be  prescribed,  after
formation of such Apex Body or Federation.

(4) It shall be the duty of the promoter to file with the Competent
Authority,  within  the  prescribed  period,  a  copy  of  the  conveyance
executed  by  him.  If  the  promoter  fails  to  execute  the  conveyance  as
provided by sub-section (1), (2) or (3), within the prescribed period, the
members of such co-operative society, the company or the association
of apartment owners or Apex Body or Federation, as the case may be,

¦ÉÉMÉ  +É`ö--18--3

18

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may  make  an  application,  in  writing,  to  the  concerned  Competent
Authority accompanied by the true copies of the registered agreements
for sale, executed with the promoter by each individual member of the
society or company or the association or Apex Body or Federation and
all other relevant documents, including the occupation certificate, if any,
for  issuing  a  certificate  that  such  society,  company  or  association  or
Apex  Body  or  Federation,  as  the  case  may  be,  is  entitled  to  have  an
unilateral deemed conveyance, executed in their favour and to have it
registered.

(5) The Competent Authority, on receiving such application, within
reasonable time and in any case not later than six months, after making
such enquiry as deemed necessary and after verifying the authenticity
of the documents submitted and after giving the promoter a reasonable
opportunity of  being heard, on  being satisfied that it  is a fit  case for
issuing such certificate, shall issue the certificate to the Sub-Registrar
or any  other appropriate  Registration Officer  under the  Registration
Act, 1908, certifying that it is a fit case of enforcing unilateral execution
of  conveyance  deed  conveying  the  right,  title  and  interest  of  the
promoter in the building or layout plot in favour of the applicant, as
deemed conveyance :

Provided that, an appeal under section 40 against the order of the
Competent Authority can be preferred by any party aggrieved by the
said order to the Housing Appellate Tribunal.

(6) On submission of application by such society, the company, the
association  of  apartment  owners  or  Apex  Body  or  Federation,  as  the
case  may  be,  to  the  Sub-Registrar  or  the  concerned  appropriate
Registration  Officer  appointed  under  the  Registration  Act,  1908,  the
certificate issued by the Competent Authority alongwith the unilateral
instrument  of  conveyance,  the  Sub-Registrar  or  the  concerned
appropriate  registration  officer  shall,  notwithstanding  anything
contained  in  the  Registration  Act,  1908,  register  that  instrument  as
deemed  conveyance.

(7) Upon  execution  of  the  conveyance  or  unilateral  deemed
conveyance, of a building or buildings in a layout, the organization in
whose  favour  such  conveyance  is  executed  shall  be  entitled  in  any
reconstruction  or  redevelopment  of  such  building  or  buildings  to  the
Floor Space Index or the Transfer of Development Right, Floor Space
Index or additional Floor Space Index consumed in construction of such
building as well as its proportionate share in increase in Floor Space
Index  as  per  provision  of  sub-section  (1)  and  in  the  event  of  any
reconstruction  or  redevelopment  of  the  building  or  buildings  being
undertaken by the said organization, then, notwithstanding anything
contained in any other law for the time being in force, such organization
shall be entitled to do so on the portion of land allocated to such building
or  buildings  in  terms  of  the  agreement  for  sale  executed  by  the
promoter  and  the  respective  flat  purchaser  without  prior  permission
of  the  promoter.

(8) The promoter or land owner shall convey the layout plot or land
to the  Apex Body  or Federation,  subject to  the right  of the  promoter
to  dispose  of  the  remaining  flats,  if  any,  and  receipt  of  the  entire
consideration amount and outstanding dues from all flat purchasers of
all the buildings or structures constructed on the layout plot. If there
is any increase in Floor Space Index or the Transfer of Development
Right or additional Floor Space Index or any benefits, available on such
layout plot, due to changes in the Government or regulatory policies,

XVI
o f
1908.

XVI
o f
1908.

XVI
o f
1908.

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19

after the conveyance or unilateral deemed conveyance of the land under
the layout to the Apex Body or Federation, then such increased Floor
Space  Index,  the  Transfer  of  Development  Right  or  additional  Floor
Space Index and other benefits shall be apportioned to the respective
legal entities in proportion to the Transfer of Development Right, Floor
Space  Index  or  additional  Floor  Space Index  used  for  the  purpose  of
construction of the buildings managed by them.

(9) The Apex Body or Federation formed by the legal entities on a
layout  plot  shall  manage  and  administer  the  common  areas  and  the
facilities without having any legal rights, title and interest in the building
or buildings in such a layout plot and all legal rights, title and interest
in  the  building or  buildings  shall  belong  to  the respective  entities  in
whose favour the conveyance of such building or buildings is executed.

20. (1) Every person who has executed an agreement to take a flat
shall  pay,  at  the  proper  time  and  place,  the  price,  his  proportionate
share of the municipal taxes, water and electricity charges, ground-rent,
if any, and other public charges in accordance with his agreement with
the  promoter.

General
liabilities of
flat
purchaser.

(2) Any  person who  has executed  an agreement  to take  a flat  and
who,  without  reasonable  excuse,  fails  to  comply  with  or  contravenes
sub-section (1) shall be punishable with fine which may extend to the
amount defaulted.

21. The State Government may, by notification in the Official Gazette,
appoint an officer, not below the rank of the District Deputy Registrar
of Co-operative Societies, to be the Competent Authority, for an area
or areas to be specified in such notification and different officers may
be appointed as Competent Authority for different local areas for the
purposes of exercising the powers and performing the duties under this
Act.

Appointment
of  Competent
Authority.

22. (1)  With  effect  from  such  date  and  in  such  areas  as  the  State
Government may, by notification in the Official Gazette, appoint, there
shall be established, for the purposes of this Act, one or more Authorities
to be called “ the Housing Regulatory Authority ”.

Establishment
of  Housing
Regulatory
Authority.

(2)  The  Housing  Regulatory  Authority,  constituted  under  sub-
section (1),  shall  be  a  body  corporate  by  the  name  aforesaid  having
perpetual  succession  and  a  common  seal,  with  power,  subject  to  the
provisions  of  this  Act,  to  acquire,  hold  and  dispose  of  property,  both
movable and immovable and to contract, and shall, by the said name,
sue or  be sued.

23. The Housing Regulatory Authority shall consist of a Chairperson
and two or more Members to be appointed by the State Government
from amongst persons who have special knowledge of, and professional
experience in, the field of public administration, urban development,
housing, finance, law or management :

Composition
of  Housing
Regulatory
Authority.

Provided  that,  a  person,  who  is,  or  has  been,  in  the  service  of
Government shall not be appointed as a Chairperson unless such person
is holding or has held the post of the Principal Secretary to the State
Government or any equivalent post under the Government of India.

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Term  of
office  of
Chairperson
and  other
Members  of
Housing
Regulatory
Authority.

24. (1) The Chairperson and other Members shall hold office for a
term not exceeding five years, from the date on which they enter upon
their offices or until they attain the age of sixty-five years, whichever
is  earlier.

(2) The salary and allowances payable to, and the other terms and
conditions of services of, the Chairperson and other Members shall be
such as may be prescribed.

(3)  The  salary,  allowances  and  other  conditions  of  services  of  the
Chairperson  and  other  Members  shall  not  be  varied  to  their
disadvantage after their appointment.

(4) An employee of the Government on his selection as Chairperson

or Member,  shall have to  retire from service  before joining.

(5)  The  Chairperson  or  any  Member  may  relinquish  his  office  by
giving  in  writing  to  the  State  Government  a  notice  of  not  less  than
three  months  or  be  removed  from  his  office  in  accordance  with  the
provisions of section 26.

(6) The Chairperson or any Member, ceasing to hold office as such,
shall  not  accept  any  commercial  employment  in  the  Housing  Sector
for a period of one year from the date he ceases to hold such office.

25. The Chairperson shall have powers of general superintendence
and direction in the conduct of the affairs of the Housing Regulatory
Authority and he shall, in addition to presiding over the meetings of
the  Housing  Regulatory  Authority,  exercise  and  discharge  such
administrative  powers  and  functions  of  the  Housing  Regulatory
Authority as may be prescribed.

Administrative
powers  of  the
Chairperson.

Removal  of
Chairperson
and  Member
of  Housing
Regulatory
Authority
from  office  in
certain
circumstances.

26. (1) The State Government may, by order, remove from office the
Chairperson  or  any Member  of  the  Housing Regulatory  Authority,  if
the Chairperson or such Member, as the case may be, has,-

(a) been adjudged as insolvent; or
(b) been convicted of an offence, which, in the opinion of the State

Government, involves moral turpitude; or

(c)  become  physically  or  mentally  incapable  of  acting  as  a

Chairperson or Member; or

(d) acquired such financial or other interest as is likely to affect

prejudicially his function as a Chairperson or Member; or

(e) so abused his position, as to render his continuance in office

prejudicial to the public interest.

(2) No Chairperson or Member shall be removed from his office under
clause  (d)  or  clause  (e)  of  sub-section  (1)  unless  he  has  been  given  a
reasonable opportunity of being heard.

Officers  of
Housing
Regulatory
Authority.

27. (1) The Housing Regulatory Authority may appoint such officers
and employees, as may be necessary for the efficient discharge of its
functions under this Act.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

21

(2) The officers and employees of the Housing Regulatory Authority
shall discharge their functions under the general superintendence of
its Chairperson. Their salary, allowances and other conditions of service
shall be such as may be determined by regulations.

28. (1) The Housing Regulatory Authority shall meet at such places
and times, and shall observe such procedure in regard to the transaction
of business at its meetings as may be determined by regulations.

Meetings  of
Housing
Regulatory
Authority.

Functions
of  Housing
Regulatory
Authority.

(2) The Chairperson, if for any reason, is unable to attend a meeting
of the Housing Regulatory Authority, the senior-most Member amongst
the Members present at the meeting shall preside :

Provided that, any decision relating to cancellation of registration
under section 7 shall not be executed unless the same is decided in
a meeting attended by all the Members.

(3) All questions which come up before any meeting of the Housing
Regulatory  Authority  shall  be  decided  by  a  majority  of  the  members
present  and  voting  and,  in  the  event  of  an  equality  of  votes,  the
Chairperson or the Member presiding shall have the right to exercise
a second or casting vote.

29. (1) The Housing Regulatory Authority shall perform the following

functions, namely :—

(i) to ensure compliance of the obligations cast upon the promoters

and the allottees under this Act and the rules made thereunder;

(ii) to cause an inquiry to be made into compliance of its orders

or directions made in exercise of its powers under this Act;

(iii) to levy fees and other charges at such rates and in respect of

such services as may be determined by regulations;

(iv) to report matter to the appropriate authority, for taking action
against  the  promoter  or  an  allottee  for  commission  of  any  offence
under any law for the time being in force;

(v) to host and maintain a website of records of all projects within
its jurisdiction as database, with all the details as set out herein for
displaying under this Act;

(vi) to take measures under section 33;
(vii) to perform such other functions related to Housing Sector as
may be entrusted to the Housing Regulatory Authority by the State
Government, as may be necessary;

(viii)  to  make  recommendations,  notwithstanding  anything
contained in the Maharashtra Regional and Town Planning Act, 1966,
either  suo moto  or  on  a  request  from  the  State  Government  in
matters  in  the  existing  Development  Control  Regulations  relating
to changes in Floor Space Index and any other related matters, as
may be prescribed :

Provided that, the Housing Regulatory Authority shall forward
its recommendations within a period of sixty days from the date
on which the Government has sought the recommendations :

Mah.
XXXVII
o f
1966.

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Provided further that, the Housing Regulatory Authority may
request  the  State  Government  to  furnish  such  information  or
documents  as  may  be  necessary  for  the  purpose  of  making
recommendations under this sub-section and the Government shall
supply such information within a period of seven days from receipt
of such request :

Provided also that, if the State Government having considered
the recommendation of the Housing Regulatory Authority comes
to a prima facie conclusion that such recommendation cannot be
accepted or  needs modifications,  it shall  refer the  recommenda-
tion  back  to  the  Housing  Regulatory  Authority  for  its  reconsid-
eration, and the Authority may, within fifteen days from the date
of receipt of such reference, forward to the State Government its
recommendation  after  considering  the  reference  made  by  the
Government. After receipt of further recommendation, if any, the
State Government shall take a final decision.

(2) Upon receiving a complaint application in this behalf, the Housing
Regulatory Authority shall, after hearing the matter from the parties
or through their representatives, as the case may be, and after making
such enquiry as it deems fit, pass a reasoned order, in writing, within
a  period  of  three  months  from  the  date  of  such  application  or
commencement  of  the  suo  moto  proceedings,  as  the  case  may  be,  or
within such further time as may be found appropriate by the Housing
Regulatory Authority.

(3) On any dispute between promoters, organization of flat purchasers
and allottees or flat or unit takers regarding failure on either part to
meet the obligations cast upon them under this Act and the rules made
thereunder, adjudication may be done by any single member bench of
the Housing Regulatory Authority, as the Housing Regulatory Authority
may, by regulations determine :

Provided  that,  nothing  in  this  section  shall  apply  in  respect  of
matters  which  are  subject  to  the  jurisdiction  of  the  Competition
Commission established under the Competition Act, 2002.

12  of
2003.

(4)(a) The Housing Regulatory Authority shall prepare and submit,
to the State Government, once in every year, the report in such form
and at such time as may be prescribed, containing,—

(i) a description of all the activities of the Housing Regulatory

Authority for the previous year ; and

(ii) the annual accounts for the previous years.

(b) A copy of the report received under clause (a) above shall be
laid as soon as may be after it is received before each House of the
State Legislature.

Powers  of
Housing
Regulatory
Authority  to
call  for
information,
conduct
investigations,
etc.

30. Where the Housing Regulatory Authority considers it expedient

so to do, it may, by order in writing,–

(a) call upon any promoter, at any time, to furnish in writing, by
himself or through his authorized representative, such information
or explanation with regard to compliance of the promoter’s obligations
relating  to  ownership  agreement  as  the  Housing  Regulatory
Authority may require ;

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

23

Powers  of
Housing
Regulatory
Authority  to
issue
directions.

Power  of
Housing
Regulatory
Authority
consequent
upon
cancellation
o f
registration.

Measures  to
be  taken  by
Housing
Regulatory
Authority
for  planned
development
and
promotion
of  housing
sector.

(b)  direct  the  promoter  to  produce  by  himself  or  through  his
authorized  representative,  all  such  books  of  accounts  or  other
documents  relating  to  the  project  or  flat  under  complaint  in  his
custody  having  a  bearing  on  the  subject  matter  of  such  complaint
and also any other information relating thereto.

31. The Housing Regulatory Authority may, for the discharge of its
functions  issue  such  directions,  from  time  to  time,  to  promoters  and
flat or  unit purchasers  or organization, as  it may  consider necessary
and such directions shall be binding on all concerned.

32.  Upon  cancellation  of  the  registration  under  sub-section  (1)  of
section 7, the Housing Regulatory Authority shall prohibit the promoter
from marketing and selling the flats and buildings constructed for the
project of which the registration is cancelled.

33.  The  Housing  Regulatory  Authority  shall  take  all  possible
measures  for  the  growth  and  promotion  of  a  healthy,  transparent,
efficient and competitive real estate market, and in particular, take the
following measures, namely :–

(a) evolve a consensus among the Central Government or the State
Government,  the  Bureau  of  Indian  Standards,  urban  local  bodies,
promoters, associations of engineers and architects and other stake
holders to follow, on mandatory basis, the structural safety norms
as may be prescribed for the area concerned by the National Building
Code or Bureau of Indian Standards or statutory provisions of the
local building bye-laws as may be modified by the State Government,
from  time  to  time ;

(b) suggest to the State Government to establish a framework of
standard procedures and norms for speedy processing and grant of
planning permissions;

(c)  promote  the  rating  of  real  estate  projects  and  the  rating  of
promoters, by the association of promoters, with a view to improve
the  confidence  level  of  both  investors  and  consumers  through  a
system  of  self-regulation,  which  may  be  based  on  the  rating
parameters developed by Association or Federation of promoters as
prescribed;

(d)  on  behalf  of  the  real  estate  sector,  take  up,  with  the
Government,  financial  institutions,  local  bodies,  regulatory
authorities and other concerned stake-holders, advocacy of issues like
prompt and easy access to credit or home loans, credible and reliable
land title certification system, speedy and transparent registration
of properties, effective institutional arrangement for proper upkeep
and  maintenance  of  built-up  properties,  statutory  framework  for
equitable and balanced relationship between promoter and flat or unit
purchasers;

(e)  promote  construction  of  environment  friendly  or  green
buildings and measures for conservation of water and its re-cycling ;
(f) with a view to encouraging construction of structurally safe and
affordable housing, promote standardization and use of appropriate
construction materials, fixtures, fittings and construction techniques.

24

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Power  of
Housing
Regulatory
Authority  to
regulate  its
own
procedure.

34.  (1)  The  Housing  Regulatory  Authority  shall  be  guided  by  the
principles of natural justice and, subject to other provisions of this Act
and of any rules made thereunder, the Housing Regulatory Authority
shall have powers to regulate its own procedure by regulations.

(2) The Housing Regulatory Authority shall have, for the purpose of
discharging its functions under this Act, the same powers as are vested
in a civil court under the Code of Civil Procedure, 1908, while trying a
suit in respect of the following matters, namely :—

V  of
1908.

(a)  summoning  and  enforcing  the  attendance  of  the  promoter,
authorized  representative  of  the  promoter  or  any  person  and
examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) requisitioning, subject to the provisions of sections 123 and 124
of the Indian Evidence Act, 1872 any public record or document or
copy of such record or document from any office;

I  of
1872.

(e)  issuing  commissions  for  the  examination  of  witnesses  or

documents;

(f) reviewing its decisions;

Vacancies,
etc.,  not  to
invalidate
proceedings
of  Housing
Regulatory
Authority.

(g) dismissing an application for default or deciding it ex-parte; and

(h) any other matter which may be prescribed.

35. No act or proceedings of the Housing Regulatory Authority shall

be invalid merely by reason of,–

(a) any vacancy in, or any defect in the constitution of the Housing

Regulatory Authority; or

(b) any  defect  in  the  appointment  of  a  person  acting  as  a

Chairperson or Member; or

(c) any irregularity in the procedure of the Housing Regulatory

Authority not affecting the merits of the case.

Establishment
of  Housing
Appellate
Tribunal.

36. (1) The State Government shall, by notification in the Official
Gazette, establish a Tribunal  to be known as  the “Housing Appellate
Tribunal” to adjudicate any dispute, hear and dispose of appeal against
any direction, decision or order of the Housing Regulatory Authority.

(2) The Housing Appellate Tribunal shall consist of a Chairperson
and  not  more  than  two  Members  to  be  appointed  by  the  State
Government  and  the  selection  of  the  Chairperson  of  the  Housing
Appellate Tribunal shall be made by the Government, in consultation
with the Chief Justice of the High Court.

(3) A person shall not be qualified for appointment as the Chairperson

or a Member of the Housing Appellate Tribunal unless he,–

(a)  in  the  case  of  Chairperson,  has  been  serving  or  is  a  retired

Judge of a High Court ;

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25

Term  of
office  of
Chairperson
and
Members
and  service
conditions.

(b)  in  the  case  of  a  Member  has  held  the  post  of  the  Principal
Secretary to the State Government or any equivalent post under the
Government of India, or a person who is well versed in the field of
urban development, housing, finance, law or management.

37. (1)  The  Chairperson  and  Members  of  the  Housing  Appellate
Tribunal  shall hold  office  for a  term not  exceeding  three years,  from
the date on which they enter upon their offices or until they attain the
age of sixty-eight years, whichever is earlier.

(2)  The  salary  and  allowances  payable  to,  and  other  terms  and
conditions of service of, the Chairperson and Members of the Housing
Appellate Tribunal shall be such as may be prescribed and shall not be
varied to their disadvantage after their appointment.

(3) The Chairperson or Member of the Housing Appellate Tribunal
may relinquish his office by giving in writing to the State Government
notice of not less than three months or be removed from his office in
accordance with the provisions of section 38.

(4) Any serving person, on his selection as a Chairperson or Member
of  the  Housing  Appellate  Tribunal  shall  have  to  retire  from  service
before joining.

(5)  The  Chairperson  or  any  Member  of  the  Housing  Appellate
Tribunal, ceasing to hold office as such, shall not accept any commercial
employment  in the  Housing  Sector  for a  period  of  one year  from  the
date he ceases to hold such office.

38.  (1)  The  State  Government  may  remove  from  office,  the
Chairperson or any Member of the Housing Appellate Tribunal, who
has,–

(a) been adjudged an insolvent; or
(b) been convicted of an offence which, in the opinion of the State

Government involves moral turpitude; or

(c)  become  physically  or  mentally  incapable  of  acting  as  the

Removal  of
Chairperson
and
Member  of
Housing
Appellate
Tribunal
from  office
in  certain
circumstances.

Chairperson or a Member; or

(d) acquired such financial or other interest as is likely to affect

prejudicially his function as the Chairperson or a Member; or

(e) so abused his position as to render his continuance in the office

prejudicial to the public interest.

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  the
Chairperson  or  Member  of  the Housing  Appellate  Tribunal  shall  not
be removed from his office on the ground specified in clause (d) or clause
(e) of that sub-section unless, the High Court, on a reference being made
to it in this behalf by the State Government, has on an enquiry held
by  it,  recommended  that  the  Chairperson  or  Member  ought  to  be
removed on such ground.

(3) The State Government may suspend from office, the Chairperson
or a Member of the Housing Appellate Tribunal, as the case may be,

¦ÉÉMÉ  +É`ö--18--4

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in respect of whom a reference has been made to the High Court under
sub-section  (2),  until  the  State  Government  has  passed  an  order  on
receipt of the report of the High Court on such reference.

Officers  of
Housing
Appellate
Tribunal.

39. (1) The State Government shall provide the Housing Appellate

Tribunal with such officers and employees as it may deem fit.

(2) The officers and employees of the Housing Appellate Tribunal shall
discharge  their  functions  under  the  general  superintendence  of  the
Chairperson of the Housing Appellate Tribunal.

Appeals  to
Housing
Appellate
Tribunal.

40. (1) Any person aggrieved by any direction or order or decision
of the Competent Authority or the Housing Regulatory Authority may
prefer an appeal to the Housing Appellate Tribunal.

(2)  Every  appeal under  sub-section  (1)  shall  be preferred  within  a
period  of  sixty  days  from  the  date  on  which  a  copy  of  the  direction,
order or decision made by the Competent Authority or by the Housing
Regulatory Authority is received  by the aggrieved person and it shall
be in such form, and accompanied by such fee as may be prescribed :

Provided that, the Housing Appellate Tribunal may entertain any
appeal after the expiry of sixty days, if it is satisfied that there was
sufficient cause for not filing it within that period.

(3)  On  receipt  of  an  appeal  under  sub-section  (1),  the  Housing
Appellate Tribunal may, after giving the parties a reasonable opportunity
of being heard, pass such orders thereon as it thinks fit.

(4) The Housing Appellate Tribunal shall send a copy of every order

made by it to the parties and to the Housing Regulatory Authority.

(5) The appeal preferred under sub-section (1) shall be dealt with by
the  Housing  Appellate  Tribunal  as  expeditiously  as  possible  and
endeavour shall be made by it to dispose of the appeal finally within
ninety days from the date of receipt of appeal :

Provided  that,  where  any  such  appeal  could  not  be  disposed  of
within the said period of ninety days, the Housing Appellate Tribunal
shall record its reasons, in writing, for not disposing of the appeal
within the said period.

Powers  and
functions  of
Housing
Appellate
Tribunal.

41. (1)  The  Housing  Appellate  Tribunal  shall  be  bound  by  the

procedure laid down in the Code of Civil Procedure, 1908.

(2)  The  Housing Appellate  Tribunal  shall  have,  for the  purpose  of
discharging its functions under this Act, the same powers as are vested
in a civil court under the Code of Civil Procedure, 1908, while trying a
suit in respect of the following matters, namely :—

V  of
1908.

V  of
1908.

(a)  summoning  and  enforcing  the  attendance  of  the  promoter,
authorized  representative  of  the  promoter  or  any  person  and
examining him on oath ;

(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits ;

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

27

I  of
1872.

(d) requisitioning, subject to the provisions of sections 123 and 124
of the Indian Evidence Act, 1872, any public record or document or
copy of such record or document from any office;

(e)  issuing  commissions  for  the  examination  of  witnesses  or

documents;

(f) reviewing its decisions;
(g) dismissing an application for default or deciding it ex-parte; and
(h) any other matter which may be prescribed.

42. Any person aggrieved by any decision or order of the Housing
Appellate Tribunal may file an appeal to the High Court within thirty
days from  the date  of receipt of  the decision or  order of  the Housing
Appellate Tribunal.

Appeal  to
High  Court.

43. Every order passed by the Housing Appellate Tribunal under this
Act  shall  be  deemed  to  be  a  decree  of  a  civil  court  and  shall  be
executable in the same manner as a decree of a civil court.

44. Whoever  fails to  comply  with or  contravenes  the provisions  of
section 4, shall, upon  the order by the Housing Regulatory Authority
in that regard, be liable to pay the penalty which may extend to rupees
one thousand per day of default.

45.  Whoever,  without  reasonable  cause,  fails  to  comply  with,  or
contravenes, the provisions of sections 6, 16 or 17 shall, upon  the order
by the Housing Regulatory Authority in that regard, be liable to pay
the penalty of rupees ten thousand for each day during which such non-
compliance continues, or rupees fifty lakhs, whichever is lower.

46. Any allottee, flat or unit purchaser or organization, who fails to
comply with, or contravenes, the provisions of the agreement for sale
executed by him with the promoter for purchase of flat, including non-
payment of any amounts or charges in respect thereof, shall, upon  the
order by the Housing Regulatory Authority in that regard, be liable to
pay the penalty which may extend to rupees ten thousand or one per
cent.  of  the  sale  price  of  the  property  specified  in  such  agreement,
whichever is higher.

47. Any  person,  who  willfully  fails  to  comply  with  the  orders  or
directions of the Housing Regulatory Authority or the Housing Appellate
Tribunal,  as  the  case  may  be,  shall,  upon  the  order  by  the  Housing
Regulatory Authority, or the Housing Appellate Tribunal, as the case
may be, in that regard, be liable to  the imprisonment for a term which
may extend to three years or penalty which may extend to rupees ten
lakhs or with both.

¦ÉÉMÉ  +É`ö--18--5

Order
passed  by
Housing
Appellate
Tribunal  to
be
executable
as  a  decree.

Penalty  for
contravention
of  section  4.

Penalty  for
contravention
of  sections
6,  16  or  17.

Penalty  for
non-
payment  by
the  allottee
or  flat  or
unit
purchaser
or
organization.

Penalty  for
non-
compliance
of  orders  or
directions  of
Housing
Regulatory
Authority
or  Housing
Appellate
Tribunal.

28

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Penalty  for
contravention
of  other
provisions
of  this  Act
or  rules
made
thereunder.

48. Any person, other than the promoter, who, without reasonable
cause, fails to comply with, or contravenes, any other provisions of this
Act  or  of  any  rules  made  thereunder,  or  does  not  pay  the  penalty
imposed on him by the Housing Regulatory Authority shall, if no other
penalty is expressly provided therefor, upon  the order by the Housing
Regulatory Authority in that regard, be liable to pay the penalty which
may extend to rupees fifty thousand.

Penalty  for
non-
compliance
by
promoters.

49.

(1) Any promoter who, without reasonable excuse fails to comply
with, or contravenes the provisions of section 9, section 12, section 14,
section  18  or  section  19,  shall,  upon    the  order  by  the  Housing
Regulatory Authority in that regard,  be liable to pay the penalty which
may  extend  to rupees  one  crore.

Miscellaneous
provisions
with  respect
to
Competent
Authority,
Housing
Regulatory
Authority
or  Housing
Appellate
Tribunal.

(2)  Any  promoter  who,  without  reasonable  excuse,  fails  to  comply
with  or,  contravenes,  any  other  provisions  of  this  Act  or  of  any  rule
made  thereunder  shall,  if  no  other  penalty  is  expressly  provided  for
such  contravention,  upon    the  order  by  the  Housing  Regulatory
Authority in that regard, be liable to pay the penalty  which may extend
to rupees ten lakhs.

50. (1) The Chairpersons, Members, Officers and other employees
of the Competent Authority, the Housing Regulatory Authority or, the
Housing Appellate Tribunal, as the case may be, shall be deemed, when
acting or purporting to act in pursuance of the provisions of this Act,
to be the public servant within the meaning of section 21 of the Indian
Penal Code.

45  of
1860.

(2) Every proceeding before the Competent Authority, the Housing
Regulatory  Authority  and  the  Housing  Appellate  Tribunal  shall  be
deemed to be a judicial proceeding within the meaning of sections 193
and 228 and for the purpose of section 196 of the Indian Penal Code
and the Competent Authority, the Housing Regulatory Authority and
the Housing Appellate Tribunal shall be deemed to be a civil court for
the purposes of section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973.

45  of
1860

2  of
1974.

(3)  No  suit,  prosecution  or  any  other  legal  proceedings  shall  lie
against the  Competent Authority,  the Housing  Regulatory Authority
and the Housing Appellate Tribunal or any of its officers or employees
in  respect  of  anything  which  is  done  or  purported  to  be  done,  under
this Act, in good faith.

(4)  No  civil  court  shall  have  jurisdiction  in  respect  of  any  matter
which the Competent Authority, the Housing Regulatory Authority or
the Housing Appellate Tribunal is empowered by or under this Act to
determine.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

29

51. (1)  The  State  Government  may,  subject  to  the  condition  of
previous publication, by notification in the Official Gazette, make rules
for carrying into effect the provisions of this Act.

Power  to
make  rules.

(2) Every rule made under this section shall be laid as soon as may
be, after it is made, before each House of the State Legislature while
it is in session for a total period of thirty days which may be comprised
in one session or in two or more successive sessions, and if, before the
expiry of the sessions in which it is so laid or the session immediately
following,  both Houses  agree  in making  any  modification  in the  rule
or both Houses agree that the rule should not be made, and notify such
decision  in  the Official  Gazette,  the  rule  shall,  from  the  date  of
publication of such notification, have effect only in such modified form
or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such
modification or annulment shall be without prejudice to the validity of
anything previously done or omitted to be done under that rule.

52. The Housing Regulatory Authority may, subject to the previous
approval of the State Government, by notification in the Official Gazette,
make  regulations  consistent  with  this  Act  and  the  rules  made
thereunder, for all or any of the matters for which provision is, in the
opinion of the Housing Regulatory Authority, necessary for the exercise
of its powers and the discharge of its functions under this Act.

IV  of
1882.

53. The provisions of this Act, except where otherwise provided, shall
be in addition to the provisions of the Transfer of Property Act, 1882,
and shall take effect notwithstanding anything to the contrary contained
in any contract.

Mah.
XXVII
o f
1977.

54. Nothing in this Act shall apply to the Maharashtra Housing and
Area  Development  Authority  and  the  Boards  established  under  the
Maharashtra Housing and Area Development Act, 1976.

55. (1) If any difficulty arises in giving effect to the provisions of this
Act, the State Government may, as occasion arises, by order published
in the Official Gazette, do anything not inconsistent with the provisions
of  this  Act,  which  appears  to  it  to  be  necessary  or  expedient  for  the
purpose of removing the difficulty :

Provided  that,  no  such  order  shall  be  made  after  the  expiry  of  a

period of two years from the date of commencement of this Act.

(2) Every order made under sub-section (1) shall be laid, as soon as
may be, after it is made, before each House of the State Legislature.

Power  to
make
regulations.

Act  to  be  in
addition  to
Transfer  of
Property
Act,  1882
and  to
override
contract  to
the
contrary.

Act  not  to
apply  to
certain
Authority
and  Boards.

Removal  of
difficulty.

Mah.
XLV
o f
1963.

56. (1) On and from the appointed day, the Maharashtra Ownership
Flats (Regulation of the Promotion of Construction, Sale, Management
and Transfer) Act, 1963, shall stand repealed :
¦ÉÉMÉ  +É`ö--18--5+

Repeal  and
savings.

30

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Provided that, the repeal shall not affect,—

(a) the previous operation of the law so repealed or anything

duly done or suffered thereunder, or

(b) any right, privilege, obligation or liability acquired, accrued

or incurred under the law so repealed, or

(c) any penalty,  forfeiture or  punishment incurred  in respect

of any offence committed against the law so repealed, or

(d) any investigation, proceedings, legal proceedings or remedy
in respect of any such right, privilege, obligation, liability, penalty,
forfeiture or punishment as aforesaid; and any such investigation,
proceedings,  legal  proceedings  or  remedy  may  be  instituted,
continued  or  enforced  and  any  such  penalty,  forfeiture  or
punishment may be imposed as if this Act has not been passed :

Provided further that, subject to the preceding proviso and any saving
provisions  made  elsewhere  in  this  Act,  anything  done  or  any  action
taken under the provisions of the law so repealed shall, in so far as it
is not inconsistent with the provisions of this Act, be deemed to have
been done or taken under the corresponding provisions of this Act; and
shall continue to be in force accordingly unless and until superseded
by anything done or any action taken under this Act.

(2) Any reference in any law or in any instrument or other document
to  the  provisions  of  the  law  so  repealed  shall,  unless  a  different
intention  appears,  be  construed  as  a  reference  to  the  corresponding
provisions of this Act.

SCHEDULE  I
[See section 11(2)]

I. Measures for protection and safety of property building to be taken

by  the  promoter.—

1. The promoter, the architect and the engineer engaged by the
promoter, shall comply with the measures for safe construction and
protection of properties against natural calamities as per the building
bye-laws and local code, provisions of the National Building Code and
other standards and such other measures as the State Government
may, by notification in the Official Gazette, specify in this behalf.

2. For the purposes of compliance with the measures referred to
in paragraph 1, the promoter shall enter into separate agreements
and engage the services of an architect and an engineer and inform
the  Housing  Regulatory  Authority  about  such  engagement  of  an
architect or an engineer, as the case may be.

3. The promoter, the architect and the engineer engaged by the
promoter shall jointly file a certificate, duly signed by each of them
with the local authority at such intervals as the local authority may
specify, certifying that the building or flats are being constructed in
accordance with the plans approved by the concerned authority and

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

31

that all the measures referred to in this Schedule are being complied
with in respect of the buildings or flats under construction to ensure
their safe construction and protection against the natural calamities.

4. If  for  any  reason,  there  is  a  change  of  architect  or  engineer
during the construction of the building or flats, the promoter shall,—

(a) engage immediately, another architect or engineer, as the
case may be, and the incoming architect or engineer shall satisfy
himself  about  the  compliance  of  the  measures  as  mentioned  in
the previous certificates submitted to the local authority or other
authorities, before  taking up the  responsibility of  certificates in
future regarding compliance of the said measures;

(b) inform  the  Housing  Regulatory  Authority  about  the
engagement of another architect or engineer, as the case may be.

II. Measures for insurance against loss or death,—

1. The promoter shall obtain an insurance policy for the building
or  flats,  during  the  period  of  their  construction,  against  loss  or
damage  by  natural  calamities,  for the  cost  or  replacement  of  such
building  and  loss  of  life  and  bodily  injuries  suffered  by  persons,
workers and labourers constructing such building or flats, who may
be inside or within the vicinity of such building or flats.

2. The promoter shall insure with any general insurance company
licensed to operate in India and obtain an insurance policy or policies
covering the liability of any loss of life and bodily injuries suffered
by  persons,  workers  and  labourers  as  above,  and  shall  keep  the
Housing Regulatory Authority informed of payment of premium, from
time to time, against such insurance policy or policies.

SCHEDULE II

(See section 12)

I. Promoter’s responsibility regarding the account of sums taken from

or on behalf of unit purchasers or flat purchasers.—

1. The promoter shall maintain building wise separate account in
any Bank, of the sums taken by him, from or on behalf of, persons
intending to take or who have taken flat in the phase developed by
the  promoter,  as  advance  towards  maintenance  and  outgoings
including  any  sum  so  taken  towards  the  share  capital  for  the
formation of a co-operative society or a company or association and
including ground rent, if any, municipal or other local taxes, charges
for water or electricity, security, maintenance of gardens, club house,
swimming pool, insurance, equipments, revenue assessment, if any,
stamp  duty  and  registration  fee  for  the  agreement  of  sale  and
conveyance deed.

As  regard  to  the  outgoings  payable  by  the  apartment  or  flat  or
unit purchasers or organization, to the promoter for the maintenance
of lay out land or project wise such as club house, swimming pool,

32

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

internal  access  roads,  gardens,  electricity,  water,  equipments,
insurance, municipal and other local taxes, and the like, the same
shall be collectively maintained in a separate account.

2. The promoter shall hold the sums collected as per paragraph
1 for the purposes for which they were given and shall disburse the
same  for  said  purposes  including  the  development  of  real  estate
project and shall on demand, in writing, by the Housing Regulatory
Authority or the flat or unit purchaser, individually or collectively,
make full and true disclosure of all transactions in respect of that
account on payment of charges and shall not utilize these sums for
any purpose other than the purpose for which they were so collected.

II. Responsibility  of  promoter  for  outgoings  till  transfer  of
management  to  the  collective  body  of  the  allottees,  flat  or  unit
purchasers.—

1. The  promoter,  who  has  collected  from  the  allottee  or  flat  or
unit  purchasers,  sums  for  the  payment  of  outgoings,  shall  pay  all
charges, including ground rent, municipal or other local taxes, charges
for  water  or  electricity,  interest  on  mortgages  or  other
encumbrances, if any, security, maintenance of gardens, club house,
swimming  pool,  insurance,  equipments,  till  the  amounts  collected
for the same are fully depleted or exhausted for the said purpose. If
the handing over management or transfer of the physical possession
of the building or property, as the case may be, to the organization
of the flat or unit purchasers, whichever is later, takes place before
the  amounts  are  fully  depleted  or  exhausted,  then  the  balance
amount,  if  any,  with  the  promoter  shall  be  refunded  to  the
organization being collective body of the flat or unit purchasers or
the Apex Body or Federation, as the case may be.

2. After  the  transfer  of  management  of  the  building  by  the
promoter to the organization, being collective body of the flat or unit
purchasers, such payments and outgoings shall be made by the flat
or unit purchasers or such collective body of flat or unit purchasers,
as the case may be. The transfer of management of the building or
the lay out land, as the case may be, shall be only after the promoter
has received all outstanding dues from the flat or unit purchasers’
organization and after the transfer of management of the building
or  the  lay  out  land,  as  the  case  may  be,  by  the  promoter  to  the
organization being collective body of flat or unit purchasers or Apex
Body or Federation, it shall be the responsibility of such organization
to maintain the said building or the lay out land, as the case may be,
and to pay the outgoings thereof.

3. The promoter shall discharge liability in respect of the above
till the sums and deposits collected by him shall remain balance in
a separate account held by the promoter in the bank . On the amount

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, ¡äò¥ÉÖ´ÉÉ®úÒ 24, 2014/¡òÉ±MÉÖxÉ 5, ¶ÉEäò 1935

33

being depleted, the promoter shall be entitled to raise the bill and
collect the amounts for the outgoings from the flat or unit purchasers
for the building or lay out land, as the case may be.

III. Refund of amount.—

1. If the promoter fails or is unable to give possession of a flat or an

apartment,—

(a) in accordance with the terms of the agreement or, as the case
may be, duly completed by the date specified therein or any further
date agreed to by the parties ; or

(b) on account of cancellation of his registration under this Act,

he shall be liable on demand, without prejudice to other remedies
to which he may be liable, to refund the amounts already received
by him in respect of that flat, with interest at a rate of fifteen per
cent. per annum as provided in this Act, including penalty at such
rate as may be determined by the Housing Regulatory Authority.

2. The interest referred to in paragraph 1 above, shall be chargeable
from  the date  the  promoter  received the  amount  or  any part  thereof
till the date the amount or part thereof and interest thereon is refunded
and such amount and interest shall be a charge on the allottee, flat or
unit purchasers’ respective flat or building, as the case may be.

IV. Inspection of accounts or records of sums taken for and on behalf

of flat purchasers or unit holders.—

The Housing Regulatory Authority may, after giving three days’
advance notice to the promoter, inspect or cause to be inspected, at
any  time  during  business  hours,  any  accounts  or  records  of  a
promoter relating to outgoings in respect of the allottee’s complaint.

ON  BEHALF  OF  GOVERNMENT  PRINTING,  STATIONERY  AND  PUBLICATION,  PRINTED  AND  PUBLISHED  BY    SHRI  PARSHURAM

JAGANNATH GOSAVI, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004

AND  PUBLISHED  AT DIRECTORATE  OF  GOVERNMENT  PRINTING, STATIONERY  AND  PUBLICATION,  21-A,  NETAJI  SUBHASH  ROAD,

CHARNI  ROAD,  MUMBAI  400  004,  EDITOR  :  SHRI  PARSHURAM  JAGANNATH  GOSAVI.

